Privacy Protocol Nocturne, Endorsed by Vitalik Buterin, Announces Shutdown

Bhushan Akolkar
June 6, 2024 Updated November 5, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Security and Privacy

Highlights

  • Nocturne closes its privacy protocol within a year of establishing its operations.
  • The privacy protocol stated it would allow the withdrawals by the end of the month.
  • Afterward, the withdrawal process will transition to self-service via a GitHub repository.

In the most recent update, Nocturne, a privacy protocol with Vitalik Buterin’s investment, has announced its gradual shutdown following the cessation of its operations since its inception last year.

Privacy Protocol Nocturne Doesn’t Give Any Reason Behind Closure

In their announcement, the Nocturne privacy protocol stated that it will gradually shut down its operations. This decision follows the shutdown of the privacy protocol they developed last year.

The company stated that the frontend at app.nocturne.xyz will remain open for withdrawals until the end of the month. Afterward, the withdrawal process will be converted to a self-serve system via their GitHub repository, providing detailed instructions on how to eject funds using their CLI tool.

“We appreciate everyone who supported the product and mission over the past year and a half. Thank you for the support, feedback, and energy. We wish everyone well in the future,” the Nocturne team expressed.

Interestingly, this development has come just six months after Nocturne raised $6 million in funding from Bain Capital Crypto and Polychain Capital. They were supposedly working on key technological improvements such as combining zero-knowledge proofs with blockchain technologies, account abstractions as well as stealth addresses to bring private accounts to public blockchain platforms.

Regulatory Crackdown

Although Nocturne hasn’t given any specific reason behind its shutdown, the growing regulatory action against privacy protocols could be one of the reasons.

On the other hand, Ethereum co-founder Vitalik Buterin has been a very strong advocate of privacy-based transactions. Discussions about privacy on the Ethereum blockchain have taken a new turn within the crypto community. The core debate focuses on whether Ethereum, as a foundational layer of blockchain technology, should inherently offer transaction privacy.

Vitalik Buterin’s viewpoint on default transaction privacy mirrors the analogy of the Transmission Control Protocol (TCP). He likens Ethereum’s protocol to the functioning of TCP, which operates in clear text, deferring encryption tasks to higher layers. Buterin suggests that Ethereum could follow a similar path, entrusting encryption duties to upper layers while preserving a robust base layer.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.